Deutsche Post and Postnord are making significant workforce reductions, with Postnord planning to end all letter deliveries in Denmark by 2026, resulting in the loss of 1,500 jobs.

Despite a three percent increase in revenue to 84.2 billion euros last year, Deutsche Post's operating profit fell by 7.2 percent to 5.9 billion euros due to rising costs and economic pressures.

Just two days before announcing the job cuts, Deutsche Post reached a new two-year collective bargaining agreement with Verdi, which includes wage increases and additional vacation days for employees.

The recent postal rate increase has been deemed insufficient to alleviate financial pressures, compounded by regulatory challenges and a weak economy affecting both letter and package delivery services.

Transport Minister Thomas Danielsen reassured citizens that letter delivery will still be possible throughout the country, as another company is prepared to take over deliveries.

Concerns have been raised regarding the impact of these changes on residents in remote areas who rely on traditional mail services.

The shift in demand towards parcel deliveries, driven by increased online shopping, has prompted PostNord to focus on parcel services as the core of its business.

The volume of traditional mail has been declining for years, with a significant drop in advertising mail noted last year, while parcel volumes continue to rise.

Factors such as inflation, reduced letter volumes, and rising wages are contributing to economic pressure on Deutsche Post, necessitating workforce reductions to maintain viability.

CEO Tobias Meyer indicated that job cuts will occur through natural attrition, emphasizing the company's commitment to its mail business despite declining volumes.

Despite the layoffs, Deutsche Post has assured that delivery services will not be delayed, although the future of physical branch closures remains uncertain.

The cost of sending letters in Denmark is high, with the cheapest option priced at approximately four euros, which discourages people from using postal services.